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How much is the goodwill?


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What is the total amount of current liabilities in the statement of financial position?


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How much is the total share premium on December 31,2020?


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What is the total contributed capital as of December 31, 2020


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What is the correct balance of Retained Earnings on December 31,2019?

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ABC Co. engaged your services to compute the goodwill and purchase price for the acquisition of XYZ Corp. The following data are available for XYZ Corp.: Current Asset 6,000,000 Current Liabilities 3,500,000 Investments 2,500,000 Non-current liabilities 2,500,000 Property, Plant and Equipment 13,000,000 Ordinary shares 7,000,000 Share Premium 1,500,000 Accumulated Profits 7,000,000 Total Assets 21,500,000 Total Liabilities and Equity 21,500,000 You found out that the investments have a fair value of P2,000,000 and the current assets and property, plant and equipment are understated by P800,000 and P1,850,000 respectively. All other assets and equities are properly stated. An examination of the company's income for the last 4 years revealed that the total earnings amounted to P9,000,000. The said earnings include gain on sale during the last year of P100,000 and P150,000 annual bonus of the president. The normal rate of return is 10%. Compute for the goodwill (purchase of goodwill for 4 years).

An analysis of TANG Co.'s liabilities on December 31, 2020 disclosed the following information: Accounts payable, after deducting debit balance in suppliers' account amounting to P100,000 and postdated checks or P50,000 4,000,000 Bonds Payable 1,000,000 Premium on Bonds Payable 100,000 Mortgage Payable 850,000 Share Dividend Payable 750,000 Credit Customers' accounts 500,000 Premium payable 600,000 Deferred tax liability 200,000 Deferred revenue 175,000 Accrued Expenses 150,000 The deferred tax liability is based on temporary differences that will reverse in 2023. Compute the total amount of current liabilities in the statement of financial position.

The shareholders' equity of ADAM Co on January 1, 2020 appears as follows: 12% Preference share, P200 par, 20,000 shares authorized, 1,400,000 7,000 shares issued and outstanding Share premium-preference 175,000 Ordinary shares, P100 par, 180,000 shares authorized, 3,500,000 35,000 shares issued and outstanding Share Premium Ordinary 1,750,000 Retained Earnings 4,500,000 During 2020, the following transactions occurred: Jan. 2 : Issued 20,000 ordinary shares for P180 per share Feb. 7 : Purchase 6,000 ordinary shares for the treasury at P200 per share Feb. 15 : Shareholders donated 5,000 entity's own ordinary shares to the corporation May 14 : Sold half of the treasury shares acquired last February 7 for P220 per share. June 27 : Sold the donated shares at P220 per share Aug 28 : Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000 Sep 24 : Received subscription to 18,000 ordinary shares at P250 per share Sep 25 : Received cash payment for each subscriber for 40% of the ordinary shares subscription price Nov 24 : Received full payment of the 10,000 shares on Sep 24 and Sep 25 Dec 31 : Close net income of P1,000,000 from the income summary account to retained earnings. How much is the total share premium on December 31,2020?

Pluto Company began operations on January 1, 2019 with an authorized capital of 500,000 preference shares of P5 par value of which 30% of which was issued for P7 and 950,000 ordinary shares of P10 par value of which half were issued on January 1, 2019 at P15 per share. During the year, the company had a net income of P1,250,000 and declared dividends of P250,000. The following were the transactions in 2020: a. Issued 100,000 ordinary shares for P17 per share. b. Issued 150,000 preference shares for P8 per share." c. Authorized the purchase of a custom made machine to be delivered in January 2021. Pluto Company appropriated P300,000 of accumulated profits for the purchase of the machine. d. Issued additional 50,000 preference shares for P9 per share, e. Net income for the year, P1,200,000. Dividends of P600,000 were declared for 2020 to shareholders of record on January 15, 2021 to be paid on March 15, 2021 What is the total contributed capital as of December 31, 2020?

The following data are taken from the ledger of EVA Co. Retained Earnings Date Particulars Debit Credit 01/01/2017 Balance P80,600 06/30/2017 Dividends paid P25,000 12/31/2017 Net income for 2017 42,500 02/07/2018 Premium on share capital 10,000 04/30/2018 Loss on sale of land 5,000 09/30/2018 Dividends paid 20,000 12/31/2018 Net income for 2018 5,800 12/31/2018 Revaluation surplus 40,000 07/01/2019 Gain on sale of treasury stock 1,600 12/31/2019 Net income 2019 33,700 Unrealized loss on FV OCI securities 3,400 What is the correct balance of Retained earnings on December 31, 2019?

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The following data are taken from the ledger of EVA Co.
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